Just like you can appraise physical property, you can get a domain name appraisal. After all, a domain name is a piece of internet property just like a house or a piece of land is a physical asset. A domain name has a certain value based on a variety of factors. Domains that end in .com are usually the most valuable with .net and .org following closely behind in value. Short, easy-to-remember domain names that stick in a customer’s mind and are easy to spell are also in higher demand, as are domain names that contain keywords that are specifically searched for and have commercial potential.
When Do You Need a Domain Appraisal
If you have a domain name, you may think you don’t need a domain appraisal. After all, you’re using it to host your business, and you have no plans to sell it. But with the constantly changing environment of the internet, your business may change course at some point, and your current domain name may no longer reflect the range of services or products you offer. If this happens, you may need to purchase a new one that’s more consistent with your revamped image. What about the old one? Chances are, there’s someone out there who’d like to buy it from you, and there are sites online where you can sell it for a set price or through an online domain auction.
Before Selling A Domain Name
If you plan on selling a domain name, it’s critical that you know the value of your online piece of real estate. Otherwise, you could sell yourself short when someone makes an offer. If you’re listing it for sale, first get an appraisal so you know its value. This gives you a better idea on how to price it and how to respond to offers. It’s a frustrating experience to find out after the fact that you sold a domain name for well under its appraised value. You wouldn’t sell a house without knowing how much its worth, why should you sell a domain name without getting an appraisal?
Determine Value of Your Domain Investments
Getting a domain name appraisal is especially important when domains like fund.com sold for almost $10,000,000 in 2008. Top-level domains are becoming more in demand and valuable as domain names with commercial potential are snatched up by new businesses coming online and by domain investors eager to add to their portfolio. You could have a high-value domain in your possession and not even know it.
Before Buying a Premium Domain Name
It’s a good idea to get a domain appraisal of a domain you’re interested before you buy it. A domain name is an asset that offers tax benefits, and you should know the value of what you’re purchasing before parting with the money. This is especially true if you’re buying a domain from a third party. Knowing the value gives you more control during the negotiating process. You can always show the domain name appraisal to the seller to negotiate a better price. It’s not a good experience to find out you’ve paid too much money for a domain name that has little value from a resale standpoint, even if you don’t plan on selling it in the near future. If you’re pinching pennies to make your business successful, don’t overpay for a domain name, get a domain appraisal!
As you can see, a domain name appraisal helps determine the value of your asset and puts you in a position of strength from a negotiation standpoint should you decide to sell it. Your domain name is the identity of your business and the real estate it rests upon. Shouldn’t you know its value? If you haven’t appraised your domain, make it a priority to do so.